Foreign institutional investors (FIIs) have sold Indian equities worth more than Rs 45,000 crore in just six trading sessions in October, taking their total net outflows from the equity market to Rs 3.6 lakh crore so far in 2026. The relentless selling has added to the pressure on domestic equities, with the Nifty 50 down almost 14% year-to-date.
Foreign portfolio investors (FPIs) sold equities worth Rs 45,125.67 crore in October after pulling out Rs 45,536.89 crore in September, according to data. March saw the steepest monthly outflow of the year, at Rs 1.22 lakh crore, followed by net selling of Rs 63,167 crore in April.
The selling has persisted despite intermittent periods of foreign inflows. FPIs were net buyers in February, July and August, but these inflows have done little to offset the heavy selling during the rest of the year.
“During the last two months the market has been steadily trending down. Elevated crude prices and high US bond yields are the two strong headwinds for the market now. So long as these headwinds remain strong the market will remain under pressure,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
Elevated US bond yields have made American fixed-income assets more attractive relative to emerging-market equities. With the yield on the 10-year US Treasury bond above 5.2%, foreign investors can earn relatively high returns without taking on the currency and equity risks associated with investing in India.